Networking: The ‘cheapest’ way to market your business

It’s unofficially known as the art of ‘schmoozing’ but for the small Entrepreneur, ‘schmoozing’ more formally known as networking takes on new meaning when the need to promote a new product or more particularly bolster the marketing programme for your business arises. 

Today more than ever, networking has taken on critical importance for Entrepreneurs.  Tighter than usual economic conditions have forced many small businesses to cut their marketing budgets; despite this, it is still necessary for businesses to position themselves at the top of the consumer’s mind when buying decisions are ready to be made. Networking steps in for businesses that need a marketing strategy which is targeted and consistent.

The idea of networking has been used since the beginning of time to share information, socialize and gain contacts.  Referrals, a major plank of networking; was then simply known as ‘word-of-mouth’.  However, with entrepreneurship emerging as a path now frequently travelled by many individuals; the need arises for business persons to increase the value of interaction amongst themselves.

Networking is a socioeconomic activity by which groups of like-minded business people recognize, create or act upon business opportunities. Networking helps Entrepreneurs to connect with influential people, meet and prospect new clients and develop relationships which increase business, enhance the entrepreneur’s knowledge and expands his sphere of influence or service in the community.

In many ways, Networking presents one of the ‘cheapest’ options for marketing a business.  Of course, the word ‘cheapest’ is used loosely as it works in conjunction with other marketing strategies which would have been in place prior to beginning the networking process.  Importantly, it should be noted that networking is not a formal activity!  Entrepreneurs should be prepared to make key business connections anywhere and at any time.

The number one salesperson for any business is the Entrepreneur.  No employee or consultant can sell an original idea like the creator.  The entrepreneur must therefore be intimate with his business and be ready to get out of the office, meet new people, shake some hands and get known.

Good networking skills have two main ingredients: confidence and information.  A confident entrepreneur can sell just about any product or idea.  Being knowledgeable about your products complements this confidence. If equipped with the right information, an entrepreneur can successfully grab a prospects attention and engage that prospect not only to the point of closing the sale but also secure future and referral business. 

In addition to the named skills, Entrepreneurs also need the following principles to network successfully:

1.       The Elevator speech – Commonly called the ‘elevator pitch’, it gives the entrepreneur a maximum of 20 seconds to get the prospects attention.  Be concise, and aim at leaving a good impression.  It will be the difference between total boredom and piquing the interest of the prospect.

2.       Be different – Imagine going on a job interview; all the candidates have similar qualifications and job experience.  What will get you the job is that thing that differentiates you from all the other candidates.   It may be that there is no difference so you must find a way to create one.  Likewise with the product or service you are offering, sometimes it is merely a matter of redefining or placing emphasis on one aspect or another of the product.  Importantly, the difference must be something that the prospect finds appealing.

3.       Help others – ‘Do unto others as you would have them do to you’ is not only a popular saying but it’s also a true to life principle.  Be helpful to others and you will be helped in return.  Networks of people are highly complex - often it is not possible to see exactly how and why they are working for you, so you must trust that goodness is rewarded, even if the process is hidden and the effect takes a while.

4.       Keep your integrity: Build trust and reputation - Building trust is essential for growing a strong business network.  Lack of trust prevents successful business networking.  Certain connections are absolutely impossible to make until a very high level of trust is established.  Always keep your integrity.

5.       Seek relevant groups and connections – Go for contacts that you can really use.  If you are a farmer trying to identify markets for your cash crops, there is nothing to be gained from attending a Horticultural festival.  Any buying that this audience does from you will be small scale and will not even begin to fulfill your need for a larger buyer who can take this crop and quite possibly future crops.  So don't go aimlessly after every networking opportunity which comes your way; instead try to find networks and contacts which will be most helpful to your aims and capabilities - ideally remembering that you need to be able to help them, as well as they should be able to help you.

6.       Plan your networking, know what you want and manage it – As an entrepreneur, networking must be planned.  Go into every networking session with goals and expected outcomes that way you will be able to track your progress and manage your networking.

7.       Follow up – What is the point of networking if you do not follow up with contacts? How then do you secure business, build your reputation as a business and build trust?  Networking only produces good results when it’s followed up.

8.       Be positive - Use positive language. Smile and see the good in people.  Be known as a positive person.  Be passionate and enthusiastic, but not emotional or subjective.  Avoid personalizing situations and remain objective.

9.       Apply sustained effort – Business networking is a form of marketing.  Any type of marketing produces better results when applied consistently in a focused way.  Be open to unplanned networking opportunities.